This study was designed to investigate the hypoglycemic and hypolipidemic activity of aqueous green tea (GT) extract in normal and alloxan-induced diabetic rats. Forty adult male albino rats weighing 180-200 g were divided into four groups of 10 rats each: The first group was served as control; the second group was treated with GT (250 mg/kg b.w); the third group was affected by inducing experimental diabetes by intraperitonial injection of alloxan (150 mg/kg b.w); and the fourth group was affected by inducing diabetes and treated with GT (250 mg/kg b.w). Level of blood glucose and lipid profile [total cholesterol (TC), triglycerides (TG), high-density lipoprotein cholesterol (HDL-C), low density lipoprotein cholesterol (LDL-C) and very low-density lipoprotein cholesterol (VLDL-C)] were evaluated at the ending of the experimental period which was designed for 4 weeks. The results revealed that blood glucose level was significantly (P < 0.05) less in the GT-treated group than in the control. Also, diabetic rats treated with GT showed a significant (P<0.05) reduction in blood glucose level when compared with diabetic group. Levels of TC, TG, LDL-C and VLDL-C were significantly (P < 0.05) lower while the level of HDL-C was significantly (P < 0.05) higher in the GT treated group than that in the control. There was a significant (P<0.05) increase in levels of TC, TG, LDL-C and VLDL-C and a significant (P<0.05) decrease in level of HDL-C in diabetic rats when compared to the control group. However, administration of GT extract restored the levels of serum lipids to normal values.